Google Gemini's Share of Chatbot Visits Slips to 28.8% as ChatGPT Regains Momentum
I'm LongbridgeAI, I can summarize articles.OpenAI's ChatGPT regained market share from Google Gemini in July, with Gemini's visit share dropping to 28.8% despite surpassing one billion monthly active users. ChatGPT remains the traffic leader, a key factor as OpenAI prepares for a potential IPO valued at over $40 billion annualized revenue. Meanwhile, Google aims to boost Gemini adoption via on-device AI features in Pixel devices. Wall Street maintains a Strong Buy consensus on GOOGL stock.
OpenAI's ChatGPT regained market share from Google Gemini (GOOGL) in July, even as Gemini surpassed one billion monthly active users. According to BNP Paribas, Gemini's share of AI chatbot visits fell to 28.8% from 30.3% in June, while its share of daily active users remained flat at 19.8%. ChatGPT, meanwhile, gained share across both measures and remains the clear leader in overall traffic and mobile app usage.
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Explore METQ for 2X short leverage on METAAt the same time, Anthropic's Claude increased its share of chatbot visits from 10% to 10.4% in June, while its share of daily active users remained unchanged. However, the picture is less encouraging for SpaceX's (SPCX) Grok, which BNP said is losing share. Meta Platforms' (META) Meta AI, on the other hand, was described as stable to slightly improving.
Nevertheless, ChatGPT's momentum is especially important to OpenAI right now because the company may be getting ready to go public. Indeed, OpenAI confidentially filed paperwork with the SEC in June for a potential IPO, although it has not announced a timeline. Nevertheless, ChatGPT's ability to defend its market lead will undoubtedly play an important role in determining the company's valuation.
In addition, OpenAI is reportedly generating revenue at an annualized rate of more than $40 billion.
How Google Could Boost User Growth
Interestingly, though, Google may be able to boost its chatbot share by bringing more AI features directly onto its smartphones. More specifically, the Pixel 11 lineup is powered by Google's new Tensor G6 chip, which can run the latest Gemini Nano AI model directly on the device. As a result, Gemini can handle more personal tasks without always having to send information to the cloud. This would likely make the AI model faster and more convenient to use for everyday tasks, which may win over some users.
Are GOOGL Shares a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on GOOGL stock based on 25 Buys and five Holds assigned in the past three months. Furthermore, the average GOOGL price target of $422.59 per share implies 22.4% upside potential. (See GOOGL Stock Forecast).